Author : | Paul Winn, CLU, ChFC |
Course Length : | Pages: 0 ||| Review Questions: 0 ||| Final Exam Questions: 50 |
CPE Credits : | 10.0 |
IRS Credits : | 10 |
Price : | $89.95 |
Passing Score : | 70% |
Course Type: | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents |
Technical Designation: | Technical |
Primary Subject-Field Of Study: | Taxes - Taxes for Course Id 1081 |
Description : |
Each year, income tax return preparation is affected by inflation-related changes to various limits and new tax laws. This course will look at those changes and new laws.
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Usage Rank : | 0 |
Release : | 2016 |
Version : | 1.0 |
Prerequisites : | None. |
Experience Level : | Overview |
Additional Contents : | Complete, no additional material needed. |
Additional Links : |
Budget update brings deficit blowout and hits to health and aged care
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Advance Preparation : | None. |
Delivery Method : | Self-Study |
Intended Participants : | Anyone needing Continuing Professional Education (CPE). |
Revision Date : | 27-Jan-2016 |
NASBA Course Declaration : | Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Approved Audience : | NASBA QAS - Text - NASBA Registry - IRS Enrolled Agents - 1081 |
Keywords : | Taxes, Tax, Filing, Season, UpdateBlowout, cpe, cpa, online course |
Learning Objectives : |
Course Learning Objectives Upon completion of this course, you should be able to:
• Calculate taxpayers’ additional tax liability resulting from the Medicare tax, net investment income tax and individual shared responsibility payment; • Recognize the federal income tax filing statuses and the criteria for their use; • Identify the types of income that must be recognized; • Apply the tax rules to the various credits and adjustments to income available to taxpayers; • Recognize the penalties that may be imposed on a preparer for failing to meet ethical and practice standards in preparing tax returns; and • Identify the duties and restrictions imposed on tax preparers under Circular 230. Chapter 1
• Apply the tax law applicable to IRA rollovers; and • Determine the federal income tax return due dates and the extensions of time available for filing. Chapter 2
• Understand the fundamental risks involving tax-related identity theft; • Recognize the best practices to ensure obtaining correct names and Social Security numbers of taxpayers and dependents; and • Identify the rules applicable to claiming a dependent. Chapter 3
o Bonuses and various awards, o Differential wage payments, o Severance pay, and o Sick pay; • Compare the tax treatment of qualified dividends and dividends that are not qualified; and • Recognize the required holding period for qualified dividends. Chapter 4
• Define “financial account” as used in tax law; • Understand the nature of signature authority; • Define “unemployment compensation” and recognize its tax treatment; • Identify the components of self-employed income; • Recognize the self-employed taxpayer’s expenses that may be deducted from gross income; • Determine the earnings and expense records that must be kept by a self-employed taxpayer; and • Calculate the taxability of Social Security benefits. Chapter 5
• Determine the tax treatment of traditional IRA and Roth IRA distributions; • Calculate the tax penalty applicable to premature distributions from an IRA; • Recognize the rules that apply to lifetime and post-mortem IRA required minimum distributions; • Identify the tax rules that apply to distributions from an employer-sponsored retirement plan; • Calculate the taxable income received by a taxpayer under a nonqualified annuity; and • Recognize the tax rules applicable to capital gains and losses. Chapter 6
• Compute the available deduction for tuition and fees; • Identify the items that may be deducted by a taxpayer itemizing deductions; and • Recognize the limits applicable to itemized deductions by high-income taxpayers. Chapter 7
• Identify the rules applicable to a child tax credit; • Determine the availability of a retirement tax credit for a taxpayer; and • Calculate a taxpayer’s child and dependent care credit. Chapter 8
• Recognize the changes to – o The medical expense deduction threshold, and o Social Security taxes on high earners and on net investment income; • Understand the requirements under the ACA for taxpayers to maintain healthcare coverage; • Identify the reasons a taxpayer may be considered exempt from the penalty for failing to maintain required health insurance; and • Calculate the penalty applicable to a non-exempt taxpayer for failing to maintain required health insurance. Chapter 9
• Identify the earned income, adjusted gross income and investment income limits that apply to a taxpayer’s eligibility for an earned income tax credit; and • Calculate the amount of the earned income credit. Chapter 10
• Recognize the penalties that may apply for insufficient tax withholding; • Understand the criteria that must be met to be exempt from tax withholding; • Identify the options available to a taxpayer to pay taxes due; and • Recognize the rules applicable to obtaining a tax refund. Chapter 11
• Apply the rules related to negotiating client refunds; • Identify the due diligence requirements imposed on tax return preparers; • Understand the e-file requirements; and • Recognize the requirements related to signing and furnishing identifying numbers on client returns and the penalties for failing to do so. |
Course Contents : | Course Learning Objectives Introduction to the Course Chapter 1 – New Tax Law/Recent Updates Chapter Learning Objectives Introduction Annual Inflation Adjustments Standard Deduction Increased Standard Deductions for Blind and Senior Unmarried Taxpayers Increased Standard Deduction Eligibility Exemption Amount Increased Personal Exemptions Dependent Exemptions Income Tax Filing Threshold Amounts IRA Rollover Per Year Limit Tax Consequences of Violating the One-Rollover-Per-Year Rule Some Rollover-type Transactions Unaffected by Ruling Rollover Transition Rule Status of Extender Tax Provisions Federal Income Tax Return Filing Due Dates Calendar Year and Fiscal Year Taxpayers Extensions of Time to File Automatic Extension of Time to File Individuals Outside the United States Individuals Serving in a Combat Zone Chapter Review Chapter 2 – The Income Tax Return Chapter Learning Objectives Introduction Determination of Filing Status Marital Status Divorced or Separated Taxpayers Annulled Marriage Married Death of a Spouse Single Married Filing Jointly Married Filing Separately Same Gender Marriage Filing Status Individuals must be Lawfully Married Under State Law State of Domicile not Controlling Same-Sex Spouses Subject to Usual Spousal Requirements Head of Household Qualifying Widow(er) With Dependent Child Tax Related Identity Theft Claiming a Dependent Qualifying Child Qualifying Relative Relatives who Need Not Live with the Taxpayer Chapter Review Chapter 3 – Taxability of Wages, Salaries, Tips and Other Earnings Chapter Learning Objectives Introduction Types of Compensation Advance Commissions and Other Earnings Allowances and Reimbursements Back Pay Awards Bonuses and Awards Differential Wage Payments Government Cost of Living Allowances Nonqualified Deferred Compensation Plans Notes Received for Services Severance Pay Sick Pay Social Security and Medicare Taxes Paid by an Employer Stock Appreciation Rights Tip Income Interest and Dividend Income Interest Income Taxable Interest Nontaxable Interest Education Savings Bond Program State or Local Government Obligations Dividend Income Qualified Dividends Required Holding Period Qualified Foreign Corporation Not Qualified Dividends Chapter Review Chapter 4 - Foreign Accounts, Refunds, Unemployment Compensation, Self-Employment Income and Social Security Benefits Chapter Learning Objectives Introduction Schedule B, Part III Foreign Accounts and Trusts Taxable Refunds, Credits, or Offsets of State and Local Taxes Unemployment Compensation Unemployment Compensation Taxable Nondeductible Contributions to Governmental Unemployment Compensation Programs Repayment of Unemployment Compensation Self-Employment Income and Expenses Income from Self-Employment Self-Employment Expenses Recordkeeping Requirements Gross Receipts Inventory Expenses Social Security Benefits Taxability of Benefits Reporting Chapter Review Chapter 5 – IRAs, Pensions, Annuities, Capital Gains and Losses Chapter Learning Objectives Introduction Taxable Distributions from IRAs, Pensions and Annuities Individual Retirement Arrangement Distributions Traditional IRA Distributions Premature Distributions Premature Distributions Avoiding Tax Penalty Pro-Rata Distribution of Non-Deductible Contributions Required Distributions during Owner’s Lifetime Required Minimum Distribution Amount Required Traditional IRA Distributions at Owner’s Death Death Before an Owner’s Required Beginning Date Life Expectancy Rule Surviving Spouse’s Life Expectancy Rule Five-Year Rule Surviving Spouse’s Election Death On or After the Required Beginning Date Roth IRA Distributions Non-Qualified Distributions of Gain before 59 ½ Subject to Tax Penalty No Required Lifetime Distributions Roth IRA Conversions & Transfers Roth IRA Death Benefit Distributions Life Expectancy Rule Surviving Spouse’s Life Expectancy Rule Five-Year Rule Surviving Spouse’s Election Qualified Retirement Plan Distributions Cost Basis in a Qualified Retirement Plan Lump Sum Plan Distributions Periodic Payment Distributions Fully Taxable Periodic Payments Partly Taxable Periodic Payments Figuring the Tax-Free Part of Periodic Payments – General Rule Early Distributions Required Minimum Distributions Plan Distributions of Non-Cash Assets Qualified Plan Rollovers Distributions Ineligible for Rollover Direct and Indirect Rollovers Plan Loans Specific Repayment Term Required Substantially-Level Amortization Required Maximum Loan Amount Limited Loan Agreement Required Death Benefits Roth Account Distributions Qualified Roth Account Distributions Tax-Free Nonqualified Roth Account Distributions Annuity Distributions Annuity Surrenders, Withdrawals and Loans Premature Distributions Amounts Received as an Annuity Annuitant’s Death After Annuity Starting Date Contract Owner’s Death Before Annuity Starting Date Estate Taxation of Annuities Capital Gains and Losses Short-Term and Long-Term Capital Gains and Losses Reporting Capital Gains and Losses IRS Form 8949, Sales and Other Dispositions of Capital Assets Schedule D Chapter Review Chapter 6 – Adjustments and Deductions Chapter Learning Objectives Introduction Adjustments to Income Deductible Part of Self-Employment Taxes Student Loan Interest Deduction Qualified Student Loan Dependents for Student Loan Interest Deductions Exceptions to Usual Dependent Rules Reasonable Period of Time Eligible Student Qualified Education Expenses Adjustments to Qualified Education Expenses Amounts Included as Interest Amounts Not Included as Interest Eligibility to Claim the Deduction Determining the Student Loan Interest Deduction Amount Income and Filing Status may Affect Student Loan Interest Deduction MAGI Defined for Student Loan Interest Deduction Student Loan Cancellations and Repayment Assistance Tax-Free Student Loan Cancellation Qualified Lenders Eligible Educational Institutions Refinanced Loans Tax-Free Student Loan Repayment Assistance Tuition and Fees Deduction Eligibility to Claim a Tuition and Fees Deduction Expenses Qualifying for a Tuition and Fees Deduction Qualified Education Expenses – Tuition and Fees Deduction Double Benefit Prohibited Adjustments to Qualified Education Expenses Tax-Free Educational Assistance Refunds Expenses That Do Not Qualify Eligible Students – Tuition and Fees Deduction Claiming a Dependent’s Expenses Expenses Paid by the Dependent Cannot be Claimed by Taxpayer Expenses Paid By Others Tuition Reductions Figuring the Tuition and Fees Deduction Claiming the Deduction Deduction Recapture Claiming the Standard Deduction Itemized Deductions State and Local Taxes State and Local Income Taxes State and Local General Sales Taxes Actual Sales Taxes Sales Tax Refunds Optional Sales Tax Tables Real Estate Taxes Mortgage Interest Points Charitable Contributions Limits on Charitable Contribution Deductibility Carryovers Contribution Records Chapter Review Chapter 7 – Child and Dependent Care, Education, Retirement and Child Tax Credits Chapter Learning Objectives Introduction Child and Dependent Care Credit Eligible Care Recipients Limited to Qualifying Persons Eligible Taxpayers Education Credits American Opportunity Credit Eligibility to Claim an American Opportunity Credit Expenses Qualifying for an American Opportunity Credit Qualified Education Expenses - American Opportunity Credit Double Benefit Prohibited Adjustments to Qualified Education Expenses Tax-Free Educational Assistance Refunds Eligible Students – American Opportunity Credit Claiming a Dependent’s Expenses Expenses Paid By The Dependent Expenses Paid By Others Tuition Reductions Figuring the American Opportunity Credit Maximum American Opportunity Credit Subject to Income Limits/Filing Status Refundable Part of the American Opportunity Credit Credit Recapture Lifetime Learning Credit Eligibility to Claim a Lifetime Learning Credit Expenses Qualifying for a Lifetime Learning Credit Qualified Education Expenses – Lifetime Learning Credit Double Benefit Prohibited Adjustments to Qualified Education Expenses Tax-Free Educational Assistance Refunds Eligible Students – Lifetime Learning Credit Claiming a Dependent’s Expenses Expenses Paid By The Dependent Expenses Paid By Others Tuition Reductions Figuring the Lifetime Learning Credit Maximum Lifetime Learning Credit Subject to Income Limits/Filing Status Lifetime Learning Credit Recapture Retirement Savings Contribution Credit Child Tax Credit and Additional Child Tax Credit Child Tax Credit Credit Limits Claiming the Credit Additional Child Tax Credit Chapter Review Chapter 8 – ACA Provisions Chapter Learning Objectives Introduction Affordable Care Act Tax Provisions Tax-Favored Health Plans Over-the-Counter Drug Costs Nonqualified Distributions from Archer MSAs and HSAs FSA Contributions Limited Unreimbursed Medical Expense Deduction Threshold Increased Medical Expense Deduction Threshold Increased for Age 65 Taxpayers in 2017 Social Security Taxes HI Component Increased for High Earners 3.8% Additional Tax on Net Investment Income for Higher-Income Taxpayers Estates and Trusts Affordable Care Act Health Plan Requirements Individual Requirement to Maintain Health Coverage Reporting Form 1095-C Reporting Form 1095-B Penalty for Failure to Maintain Health Coverage Penalty Examples Exemptions from Penalty for Failure to Maintain Health Coverage Refundable Tax Credits to Assist in Purchase of Qualified Health Plan Eligibility for Credit Federal Poverty Level Amount of the Credit Benchmark Plan Taxpayer’s Expected Contribution Household Income Calculating the Credit Adjusted Monthly Premium Special Rules Applicable to the Tax Credit Reconciling Advance Premium Tax Credits Additional Tax Limitation Claiming the Tax Credit - Reporting Form 1095-A Chapter Review Chapter 9 – Earned Income Tax Credit Chapter Learning Objectives Introduction Earned Income Tax Credit Adjusted Gross Income Limits Valid Social Security Number Required Tax Filing Status Citizenship or Residency Foreign Earned Income Investment Income Earned Income EIC Rules That Apply Only if the Taxpayer Has a Qualifying Child Relationship, Age, Residence and Joint Return Tests The Relationship Test The Age Test Student Defined Permanently and Totally Disabled Defined The Residency Test Exception for U.S. Military Stationed Outside the U.S. The Joint Return Test Child Must Have Valid Social Security Number Qualifying Child of More than One Person Rule Tiebreaker Rules Qualifying Child of Another Taxpayer Rule EIC Rules That Apply if Taxpayer Does Not Have a Qualifying Child The Age Rule Death of Spouse During Year The Dependent of Another Person Rule The Qualifying Child of Another Taxpayer Rule The Main Home Rule Figuring the Amount of the Earned Income Credit Calculating Earned Income for EIC Purposes Taxpayers Not Self-Employed, Statutory Employees, Clergy or Church Employees Self-Employed Taxpayers, Statutory Employees, Clergy and Church Employees Due Diligence Requirements Eligibility Checklist – IRS Form 8867 Chapter Review Chapter 10 – Tax Payments and Refunds Chapter Learning Objectives Introduction Tax Withholding and Estimated Tax Payments Tax Withholding Form W-4 Exemption from Withholding Penalties Withholding from Nonwage Income Estimated Tax Requirement to Pay Estimated Tax Payment and Refund Options Payment of Income Tax Owed Refunds Limit on Direct Deposit Refunds Chapter Review Chapter 11 – Ethics, Practices & Procedures Chapter Learning Objectives Introduction Requirement to Give Taxpayer a Copy of Return Tax Return Preparers Required to Sign Returns Tax Return Preparers Required to Furnish Identifying Number Requirement to Retain a Copy of Return Prohibition on Negotiation of Client Refund Checks Due Diligence in Preparing Returns Compliance with E-file Procedures Affected Tax Return Preparers Timing of Taxpayer Signature Timing of Filing Recordkeeping Prohibited Filing with Pay Stub Proper Handling of Rejects Negligent or Intentional Disregard and Willful Understatement of Liability Tax Return Preparer Duties and Restrictions Practitioner Competence Written Advice Solicitation of Business Advertising and Solicitation Requirements Professional Fee Information Disclosure of Responsibility for Costs Communication of Fee Information Retention of Communications Containing Fee Information Improper Associations Unauthorized Practice of Law Responding to IRS Requests for Information Requested Material not in Practitioner’s Possession Material Requested Concerning Alleged Practitioner Violation Interference with an IRS Request for Information Knowledge of Client Omissions Requirement for Accuracy Return of Client Records Nature of Client Records Conflicting Interests Chapter Review Glossary |